The Government of India has operationalised the Inventory-based Cross-border E-Commerce Export Framework under the Foreign Trade Policy (FTP), 2023 through Notification No. 27/2026-27 dated August 5, 2026, and Public Notice No. 25/2026-27 issued on the same day. The new framework establishes a policy and procedural structure for inventory-based cross-border e-commerce exports of goods manufactured or produced in India. It enables export-only inventory operations through registered Exporters-on-Record (EORs).
The framework follows the amendment to the Foreign Direct Investment policy through Press Note No. 3 (2026 Series), which permits inventory-based e-commerce operations exclusively for exports. According to the government, the initiative is designed to support Indian manufacturers, artisans and micro, small and medium enterprises (MSMEs) by expanding their access to overseas markets while maintaining regulatory safeguards.
How the Inventory-based Cross-border E-Commerce Export Framework Works
Under the Inventory-based Cross-border E-Commerce Export Framework, eligible e-commerce entities can conduct export-only inventory operations through a registered Exporter-on-Record. The Exporter-on-Record procures goods from Indian Sellers-on-Record (SORs) only against confirmed overseas orders. The exporter then ships the products in its own name and assumes responsibility for export operations as well as compliance with destination-country regulations.
The framework allows Indian sellers to access international markets without directly handling export-related processes. Export documentation, customs procedures, destination-country compliance, product testing and certification, packaging, labelling, fulfilment, logistics and reverse logistics can all be managed by the registered Exporter-on-Record. Sellers can therefore focus on manufacturing and innovation while relying on organised export networks to reach foreign buyers.
The government has also introduced safeguards to ensure that export benefits reach Indian manufacturers and MSMEs. Export inventory can be procured only against confirmed export orders, and speculative inventory build-up for export purposes is not allowed. The framework further states that export inventory must be separately identified, segregated and maintained through a digital repository to ensure complete traceability throughout the export process.
In addition, goods procured under the Inventory-based Cross-border E-Commerce Export Framework cannot be diverted for sale in the domestic market. Returned or rejected consignments must either be re-exported, returned to the seller or disposed of according to prescribed procedures. Annual compliance certification and maintenance of digital records have also been made mandatory to strengthen transparency and enforcement.
The framework includes provisions aimed at protecting the interests of Indian sellers. Payments to Sellers-on-Record must be made within the prescribed timeline, regardless of whether payment has been received from overseas buyers. Export rebates and refunds are required to be apportioned and passed on to sellers in proportion to the Free on Board (FOB) value attributable to their goods.
Indian sellers will also receive visibility into the final sale price of their products, order status and shipment tracking information. The government said the Inventory-based Cross-border E-Commerce Export Framework has been structured to ensure transparency in overseas sales, timely payments and clear accountability for export compliance. These measures are expected to reduce compliance costs for Indian enterprises.
The government said the framework is expected to increase the participation of Indian manufacturers, traders and MSMEs in global e-commerce supply chains. By combining organised fulfilment networks with strong regulatory oversight, the Inventory-based Cross-border E-Commerce Export Framework seeks to promote transparency, improve market access and ensure that export-related benefits are effectively passed on to Indian sellers.
Key measures under the framework include export-only inventory operations through registered Exporters-on-Record, procurement only against confirmed overseas orders, mandatory digital traceability, restrictions on domestic diversion of export inventory, timely seller payments, proportional sharing of export rebates and annual compliance certification requirements.
